Franchisor and Franchisee Relationship: Red Flags and Green Lights

Not sure what to look for in a franchisor and franchisee relationship? Learn the warning signs telling you when to stay away, as well as what traits indicate support for your success.


People have a lot of misconceptions about what makes a franchisor and franchisee relationship work, but in essence, the franchisor is the person(s) or corporation that owns the trademarks and business model of a particular brand. Bear in mind the differences between a franchise and a chain.

Within a chain business, a parent company owns each location. Whereas with a franchise, different stores or locations are owned by separate individuals who are solely responsible for daily operations. The franchisor licenses the use of the trademarks, business model, and operational guidelines to the franchisee in exchange for payment. Some of the attributes of the best franchisors include:

  • Motivation to share their experience and know-how with their franchisees
  • Sharing of the tools, standards, and operational skills to run a successful business
  • Focus on ensuring that each franchisee excels to their highest potential within the brand


Great franchisors have all learned from their mistakes and can share lessons with their franchisees. A strong franchisor and franchisee relationship allows you to benefit from the knowledge and well-earned expertise of a proven system that has weathered storms and developed strategies for success.

The franchisee is the person(s) or corporation that owns and operates the business using the trademark and business model system licensed from the franchisor. One of the great advantages of learning how to become a franchise owner is the knowledge that you will be going into business for yourself, but you’ll never be alone. The right franchisor will provide you with the freedom but also the support you need to succeed.



Take your time to consider the advantages and disadvantages of franchising. If you have committed to the idea of owning a franchise, you still need to pare down your potential investment by industry, concept, startup costs, and various other factors. Finding the right franchise for you can be an extremely personal process, but here are some handy things to keep in mind, regardless of the market:

A Strong Reputation. Whether a franchise has 5 locations or 500, it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors.

Solid Financial Track Record. It’s worth researching a franchisor’s history of profitability, whether they’ve managed to maintain financial strength, and where or why they have faltered.

A Growing and Sustainable Market. Choose a market that is positioned for opportunity and growth for years to come. A hot and happening concept may be great in the short-term, but franchisors with long-term focus and growth potential will provide you with a richer business experience.

Size Up the Competition. Many franchisors have already done the market research to find the ideal locations for their brand, but it’s equally important for you to do your own research. By getting a sense of how similar business concepts perform in certain areas and what neighborhoods are underserved by certain markets, you can focus on the type of franchise that will work best in your community.


As you are selecting the right franchisor, some questions to consider include:

What’s offered in terms of training and ongoing support? The right franchisor will offer comprehensive training for franchise owners and a program model for your staff to ensure that everyone is fully prepared to run the business and provide the best possible services for the customers you are slated to provide for.

What sets this brand apart? Within the better burger fast-casual dining industry, Wayback Burgers stands apart by offering prospective franchise owners the flexibility to run their business as they see fit while providing them the resources to encourage them to expand on their own time.

What’s offered in terms of marketing my business? One of the major incentives to starting your business as a franchisee is the guaranteed backing of a winning marketing team. As opposed to opening your own independent enterprise, owning a franchise comes with the experience of a known brand and its team of industry experts who are always available to help make your business a success.


Wayback Burgers has been franchising since 2006 and currently operates in over 34 states and international locations. We approach our franchisor and franchisee relationships with the same honest, uncomplicated philosophy we apply to our burgers. We welcome both new and seasoned entrepreneurs to join our team and find out why we’re one of the strongest names in the better burger business.

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